Trade Alert - (UBER) May 9, 2024

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

Tech Alert - Uber Technologies, Inc. (UBER) – BUY

Buy Uber Technologies, Inc. (UBER) June 2024 $57.50-$62.50 in-the-money vertical BULL CALL spread at $4.15

Opening Trade

5-9-2024

expiration date: June 21, 2024

Portfolio weighting: 10%

Number of Contracts = 24 contracts

I like the price action lately in many tech names and Uber just announced a loss during its most recent earnings report.

The stock has really bounced nicely after the report and I am inclined to go aggressively into Uber shares after the drop.

Uber is one of the better 2^nd tier growth tech stocks and I like the setup here and the numbers are favorable for a short-term trade.

The economy is softening slightly, but the Fed halting the pace of balance sheet runoff has reinvigorated the short-term bulls and I am willing to bet on that with a company like Uber. The Jerome Powell pixie dust is working its magic in the short term.

Don’t pay more than $4.30.

Here are the specific trades you need to execute this position:

Buy to Open 24 June 2024 (UBER) $57.50 calls at………….………$10.75

Sell to short 24 June 2024 (UBER) $62.50 calls at…….........…….$6.60

Net Cost:……………………..…….………..…….....................................$4.15

Potential Profit: $5 - $4.15 = $0.85

(24 X 100 X $0.85) = $2,040 or 20.48% in 43 days

If you are uncertain about how to execute a bear put options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

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